The Jiffy Corporation Data for the Current Year - What Would a Horizontal Analysis Report with Respect to

question 121

Multiple Choice

The Jiffy Corporation data for the current year: $\begin{array}{|l|c|c|}\hline \text { Account } & \text { Current year } & \text { Prior year }\\\hline \text { Current assets } & \$ 72,000 & \$ 60,000 \\\hline \text { A/R } & \$ 49,500 & \$ 45,000 \\\hline \text { Mdse. Inventory } & \$ 56,000 & \$ 40,000 \\\hline \text { Current liabilities } & \$ 63,250 & \$ 55,000 \\\hline \text { Long-term liabilities } & \$ 31,500 & \$ 30,000 \\\hline \text { Common stock (5,000 shares) } & \$ 54,000 & \$ 40,000 \\\hline \text { Retained earnings } & \$ 28,750 & \$ 20,000 \\\hline \text { Net sales revenue } & \$ 565,600 & \$ 505,000 \\\hline \text { COGS } & \$ 454,250 & \$ 395,000 \\\hline \text { Gross Profit } & \$111,350 & \$ 110,000 \\\hline \text { Selling/General expenses } & \$46,800 & \$ 52,000 \\\hline \text { Net income before taxes } & \$ 64,550 & \$ 58,000 \\\hline \text { Income tax expense } & \$ 19,250 & \$ 17,500 \\\hline \text { Net Income } & \$ 45,300&\$40,000\\\hline\end{array}$


- What would a horizontal analysis report with respect to net income before income tax expense and net income?

• A)Both net income before tax expense and net income were 8.01% of net sales revenue.
• B)Both net income before income tax expense and net income increased by $85,800.
• C)There was an increase in both net income before income tax expense and net income of 11.85%.
• D)The current ratio is: 1:14.

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Definitions:

Rescorla-Wagner Model

A mathematical model that describes how the strength of a stimulus in classical conditioning is a function of its association with the unconditioned stimulus.

UCS Preexposure

UCS preexposure refers to the process in classical conditioning when the unconditioned stimulus is presented to the subject before conditioning, which can influence the effectiveness of the conditioning process.

Amygdala Circuits

Neural pathways involving the amygdala, crucial for emotional processing and fear responses.